Gold: Near 2-Week Low On Cautious Optimism Ahead Of British Referendum
Growth Aces | Jun 23, 2016 04:22AM ET
Gold Near Two-Week Low On Cautious Optimism Ahead Of British Referendum Result
- Yellen said Wednesday before the House Financial Services Committee that the labor market remains in a healthy condition and continues to improve, particularly in the area of wage growth. She also noted that small businesses are able to gain access to credit, and that the access to credit is growing at a healthy pace. In her testimony Tuesday before the Senate Banking Committee, Yellen reiterated the US central bank's intention to raise interest rates, taking a cautious approach in view of an uncertain US economy.
- International Monetary Fund Managing Director Christine Lagarde said on Wednesday that the Federal Reserve should avoid "abrupt" interest rate moves and focus on stability in its monetary policy.
- US economic data came out positive, which, combined with Yellen' s remarks, raised speculations that the second interest rate hike by the Fed would come rather sooner than later. US existing-home sales sprang ahead in May to their highest pace in almost a decade, according to the National Association of Realtors Wednesday.
- Total existing-home sales grew 1.8% from a downwardly revised 5.43 million in April to a seasonally adjusted annual rate of 5.53 million in May, the highest reading of this measure since 2007.
- Gold touched a fresh two-week low early on Thursday on cautious optimism that British voters would opt to stay in the European Union in today’s referendum.
- In our opinion gold price is likely to fall in the area of 1240 in the near term, if British voters decide do stay in the EU. We will be looking to use lower levels to buy gold. Our long-term outlook on gold and other precious metals remains bullish.
FOREX - MAJOR PAIRS:
FOREX - MAJOR CROSSES:
PRECIOUS METALS:
It is usually reasonable to divide your portfolio into two parts: the core investment part and the satellite speculative part. The core part is the one you would want to make profit with in the long term thanks to the long-term trend in price changes. Such an approach is a clear investment as you are bound to keep your position opened for a considerable amount of time in order to realize the profit. The speculative part is quite the contrary. You would open a speculative position with short-term gains in your mind and with the awareness that even though potentially more profitable than investments, speculation is also way more risky. In typical circumstances investments should account for 60-90% of your portfolio, the rest being speculative positions. This way, you may enjoy a possibly higher rate of return than in the case of putting all of your money into investment positions and at the same time you may not have to be afraid of severe losses in the short-term.
How to read these tables?
1. Support/Resistance - three closest important support/resistance levels
2. Position/Trading Idea:
BUY/SELL - It means we are looking to open LONG/SHORT position at the Entry Price. If the order is filled we will set the suggested Target and Stop-loss level.
LONG/SHORT - It means we have already taken this position at the Entry Price and expect the rate to go up/down to the Target level.
3. Stop-Loss/Profit Locked In - Sometimes we move the stop-loss level above (in case of LONG) or below (in case of SHORT) the Entry price. This means that we have locked in profit on this position.
4. Risk Factor - green "*" means high level of confidence (low level of uncertainty), grey "**" means medium level of confidence, red "***" means low level of confidence (high level of uncertainty)
5. Position Size (forex)- position size suggested for a USD 10,000 trading account in mini lots. You can calculate your position size as follows: (your account size in USD / USD 10,000) * (our position size). You should always round the result down. For example, if the result was 2.671, your position size should be 2 mini lots. This would be a great tool for your risk management!
Position size (precious metals) - position size suggested for a USD 10,000 trading account in units. You can calculate your position size as follows: (your account size in USD / USD 10,000) * (our position size).
6. Profit/Loss on recently closed position (forex) - is the amount of pips we have earned/lost on recently closed position. The amount in USD is calculated on the assumption of suggested position size for USD 10,000 trading account.
Profit/Loss on recently closed position (precious metals) - is profit/loss we have earned/lost per unit on recently closed position. The amount in USD is calculated on the assumption of suggested position size for USD 10,000 trading account.
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Source: Growth Aces - Forex And Precious Metals Trading Signals
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